Business Profit Loss Analyses
Overview
Three types of allegations typically arise in business torts. In some cases, the charging party alleges that the offending party did not fulfill the terms of the business relation contract. Breach of an employment contract is an example of a charging party’s allegation.
In other cases, it is alleged that the offending party unlawfully interfered with the business operations of the charging party. These types of allegations include unlawfully soliciting of the charging party’s employees or clients. In still other cases, it is alleged that the offending party’s business conduct caused the business operations of the charging party to incur a financial loss.
In business cases, we calculate the economic value of the alleged business profits losses and/or evaluate the opposing party’s damage claims.
Breach of Contract
Analyses in breach of contract damage cases generally involve calculating the monetary amount that restores the damaged party to the economic position they would have been in had the contract been executed.
We are typically retained to calculate or evaluate the analysis of the ‘but-for’ damages contract breach compensatory damages.
The analysis of the but-for damages include elements such as lost business opportunities and higher employment cost allegations in breach of employment cases, and lost profits in a business breach of contract case.
In some business tort cases, the business damage calculation involves determining the monetary amount that the charging party could have been reasonably expected to receive from the contract had the breach not occurred.
In other instances, we work with attorneys to calculate the liquidated damages that are specifically provided for in the contract.
Tortious Interference
In some business tort cases, it is alleged that the offending party unlawfully interfered with the business operations of the charging party. These types allegations also arise in breach of employment lawsuits.
In these types of business cases, we begin by analyzing the economic outcome that would have most likely occurred had there not been the alleged unlawful business interference.
This economic outcome, which is typically referred to as the ‘but-for’ scenario, is then compared to the actual economic outcome for the business.
Wrongful Business Conduct
In some business tort cases, it is alleged that the offending party’s business conduct caused the business operations of the charging party to incur a financial loss. For instance, in some breach of an employment contract cases the charging party alleges that the offending party’s wrongful solicitation of it’s clients resulted in lost business profits.
In business conduct cases, we begin by analyzing the economic outcome that would have most likely happened had the alleged harmful business conduct not occurred.
This economic outcome, which is typically referred to as the ‘but-for’ scenario, is then compared to the actual economic outcome for the business.
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Case examples:
- Virant v. Encana Oil
- ADP, Inc. v. National Merchant Alliance, LLC
- Bear Transportation, LP v. Somerset Logisticso
- Lloyds of London v. IMAK, et al.
- EMS Energy Services USA v. Globalogix
- State of Texas v. Par Pharmaceutical, Inc.
- Southwestern & Pacific Specialty Finance, Inc. v. City of San Antonio
- United Biologics v. TAAIS, et al.
- Wilson Industries v. Bell Supply
- Schlumberger, Inc. v. Ricky Parker et al.
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